EUR/NZD: Horizontal Channel is in Play on the H4 Chart

• EUR/NZD trades within a horizontal channel on the H4 chart.
• The SMA 30 has been working as a resistance.
• The H1 chart made a strong bearish move in the Tokyo session.
• Intraday minor charts have been bearish.

EUR/NZD -Technical Analysis- H4 chart

The chart shows that the price gets trapped within 1.75500-1.74115. It has had a rejection at the resistance and produced a bearish inside bar. Upon producing a bullish corrective candle, it has been heading towards the North with good momentum. Sellers are going to wait for the price to make a breakout at the horizontal support to look for short opportunities. A bearish breakout at the channel’s support may drive the price towards 1.72000.

On the contrary, if the level holds the price and produces a bullish reversal pattern, the buyers may wait for the price to make a breach at the channel’s resistance to go long in the pair. In that case, it may find its resistance around 1.77000.

Price Action Analysis- H1 Chart

The chart shows that the price after having a rejection at 1.75500 made a move towards the South. The price then consolidated and made a bullish correction. It produced a bearish inside bar at 1.75000. Since then, it has been heading towards the downside with a good momentum. A bearish trend may play a vital role here.

As the price approaches the horizontal support, buyers may wait for the price to produce a bullish reversal signal followed by a breakout at the trend line to go long in the pair.

On the contrary, if the chart makes a breakout at the support, traders are going to keep an eye on the price action around the trend line for short opportunities.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn